Kelby Krabbenhoft becomes CEO of Sanford Health, after email on COVID-19, masks



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Sanford Health and Krabbenhoft have “mutually agreed to separate,” the South Dakota-based health system announced Tuesday (Nov. 24).

The notice did not mention Krabbenhoft’s reason for leaving or his email, first reported by Forum News Service, in which Krabbenhoft said he refused to wear a mask because he had recovered from COVID -19, he believed he was immune to the virus, and considered doing so as a “symbolic gesture”.

“Kelby’s impact on the organization and the communities it serves will be felt for generations to come,” said Brent Teiken, Chairman of the Board of Sanford Health, in a press release.

Krabbenhoft released his own statement minutes later to discuss the move, ending his 25-year career with Sanford Health and 40 years in the healthcare industry.

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“We decided today was a good time to retire. Sanford is in a good position, the strongest ever,” he wrote. “It’s Thanksgiving week and almost exactly 25 years since my family arrived here. It’s a good time to say ‘goodbye’. ”

Terms of Krabbenhoft’s departure will not be released, a spokesperson for Sanford Health said.

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Bill Gassen, Chief Executive Officer, has been selected by the Board of Directors as President and Chief Executive Officer.

“Bill is the right person to lead Sanford Health through these unprecedented times because of his extensive experience with many aspects of the organization and his deep commitment to our staff,” said Teiken. “We are extremely optimistic to have a firm hand behind the wheel in partnership with our existing management team.”

In addition to Gassen, the healthcare system leadership team remains in place: Executive Vice President Micah Aberson, Medical Director Dr. Allison Suttle, COO Matt Hocks, Director of People Nathan Peterson and Director of Finance. Bill Marlette.

Sanford Health is one of the largest nonprofit health care systems in the country, with approximately 48,000 employees and large medical centers and hundreds of clinics in South Dakota, North Dakota and Minnesota.

Email has caused controversy, confusion

Krabbenhoft, who is not a doctor, gained national attention last week after emailing employees on November 18 telling them he would not wear a mask because he had recovered from COVID -19 and considered himself immune for at least seven months or more. .

“Wearing a mask defies the effectiveness and purpose of a mask and sends a false message that I am susceptible to infection or that I could pass it on,” he wrote. “I have no interest in using the masks as a symbolic gesture when I consider that my actions on behalf of our family leave no doubt as to my support for all 50,000 of you.”

North Dakota State University athletic director Gene Taylor announces Sanford Health's $ 10 million donation to help renovate the Bison Sports Arena as Sanford Health COE Kelby Krabbenhoft and President NDSU's Dean L. Bresciani listen during ceremonies September 27, 2010 in Fargo.  David Samson / Forum News Service

North Dakota State University athletic director Gene Taylor announces Sanford Health’s $ 10 million donation to help renovate the Bison Sports Arena as Sanford Health COE Kelby Krabbenhoft and President NDSU’s Dean L. Bresciani listen during ceremonies September 27, 2010 in Fargo. David Samson / Forum News Service

The email quickly raised concerns about the healthcare system CEO’s views on COVID-19 and masking, in a state where nearly half of the deaths from the pandemic have died in the past month and where its hospitals and health workers are struggling to keep up with a wave of hospitalizations.

Senior executives at Sanford Health were quick to disavow their CEO’s statement and immunity claims, which are not supported by the best scientific evidence available.

“Kelby Krabbenhoft’s email was based on his own experience with COVID-19 and his personal opinions on the virus. They do not reflect the views of our healthcare system as a whole, ”wrote executive vice president of the system, Micah Aberson.

Meanwhile, Krabbenhoft gave interviews to local media to say he would in fact wear a mask, following guidelines from the United States Centers for Disease Control and Prevention. But he also said he did not support mask warrants – a possible explanation why Sanford Health, a major health system in South Dakota, did not support pandemic measurement unlike Avera Health, its long distance rival.

This was another position quickly disowned by a senior Sanford officer. In an interview broadcast by CBS News on Monday, Sanford Health chief medical officer Dr Suttle called on Governor Kristi Noem to institute a statewide mask warrant.

The back-and-forth has raised constant questions about Sanford Health’s official stance on health-related policies amid a growing pandemic.

Krabbenhoft’s mandate marked by growth

Krabbenhoft was a singular figure in the history of Sanford Health, transforming it into an integrated regional health system with nationally recognized research and other initiatives.

He became the head of the Sioux Valley Hospital in Sioux Falls in 1996, developing what has become the Sioux Valley Health System. Sioux Valley’s growth took a big boost when Krabbenhoft forged ties with T. Denny Sanford, a billionaire high-risk credit card mogul, whose business is based in South Dakota.

Sanford donated the equivalent of $ 16 million towards the construction of what has become the Sanford Children’s Hospital in Sioux Falls. In 2007, Sanford donated $ 400 million to the healthcare system, which was later renamed in his honor.

On a stage above dozens of honored guests with shovels, Kelby Krabbenhoft, president and CEO of Sanford Health and T. Deny Sanford, founding philanthropist, inaugurate the new $ 541 million Sanford Health hospital on Tuesday 31st July 2012, in Fargo.  Dave Wallis / Forum News Service

On a stage above dozens of honored guests with shovels, Kelby Krabbenhoft, president and CEO of Sanford Health and T. Deny Sanford, founding philanthropist, inaugurate the new $ 541 million Sanford Health hospital on Tuesday 31st July 2012, in Fargo. Dave Wallis / Forum News Service

In 2009, Krabbenhoft completed a merger with Fargo-based MeritCare Health System, significantly expanding Sanford’s footprint and operations, followed by additional mergers with health systems in Bemidji, Minnesota and Bismarck, North Dakota. A planned merger with Fairview Health System in Minnesota has failed. in 2013, as did one of them with Iowa-based UnityPoint Health.

But the last few years have been accompanied by problems for Krabbenhoft. In 2018, Krabbenhoft cracked down on swirling rumors that he was about to step down as CEO or had been fired from his post for various claimed actions. He then said he plans to retire in 2023 at age 65.

Earlier this year, ProPublica released a report that Krabbenhoft’s friend and main patron of the healthcare system, T. Denny Sanford, was under investigation for possible possession of child pornography.

Krabbenhoft’s departure comes at a delicate time for Sanford Health. Krabbenhoft and his counterpart, Dr Marc Harrison of Intermountain Healthcare in Utah, announced plans to merge the two healthcare systems on October 26.

Intermountain Healthcare did not immediately respond to a request for comment on Krabbenhoft’s departure.

The merger, which is slated to be completed next year, would create an organization with 89,000 employees, 70 hospitals, 435 clinics and 336 senior care facilities, creating perhaps the sixth or seventh largest healthcare system in the country .

Krabbenhoft said his role would then be CEO Emeritus for two years, during which he would contribute to the planning strategy and possible future growth of the combined system. He would also join the combined board of directors of the organization.

“I’m really comfortable with this,” Krabbenhoft told Forum News Service during the merger discussion last month. “I’ve been doing this for 40 years and I’m anticipating my retirement in a few years.

Instead, a month later after his COVID-19 email, Krabbenhoft had become CEO.

Sanford’s full press release is below:

Sanford Health and CEO Kelby Krabbenhoft mutually agree to separate
Bill Gassen named new President and CEO

SIOUX FALLS, SD –The Board of Directors announced that Sanford Health and longtime CEO Kelby Krabbenhoft have mutually agreed to separate.

The Board of Directors recognized Krabbenhoft’s contributions to the organization during his long tenure. Krabbenhoft assumed the role of chief executive officer in 1996 and made the organization of a community hospital the largest nonprofit rural health system in the country, now covering 26 states and 10 countries. “Kelby’s impact on the organization and the communities it serves will be felt for generations to come,” said Brent Teiken, Chairman of the Board.

The Board of Directors appointed Bill Gassen President and CEO of Sanford Health. Bill has been with the organization since 2012, most recently serving as Executive Director. His appointment takes effect immediately.

“Bill is the right person to lead Sanford Health through these unprecedented times because of his extensive experience with many aspects of the organization and his deep commitment to our staff,” said Teiken. “We are extremely optimistic to have a firm hand behind the wheel in partnership with our existing management team.”

“I am honored to have the opportunity to work on behalf of the Sanford family and help lead this organization and its life-changing work. Our system priorities will be focused on caring for our employees, patients and the communities we serve, ”said Gassen.

Gassen started his career at Sanford Health in 2012 as a corporate legal counsel and moved to human resources two years later as vice president of human resources integration. He then held the position of Human Resources Director before his promotion to Administrative Director.

Gassen and his wife, Jill, have five children.

The Executive Leadership Team comprised of Executive Vice President Micah Aberson, Medical Director Allison Suttle, Chief Operating Officer Matt Hocks, Chief of Staff Nathan Peterson and Chief Financial Officer Bill Marlette will continue to assist with the tasks. supervision of the organization.

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